Most Americans should save money on gas in 2024, says GasBuddy.
“The global refining picture continues to improve, providing more capacity and peace of mind that record-setting prices will stay away from the pump in 2024. On the whole of the year, we’re expecting the average American household to save about $100,” said GasBuddy’s Head of Petroleum Analysis Patrick DeHaan.
DeHaan says Indiana’s gas tax has grown in recent years, which means Indiana’s gas prices aren’t as cheap as they used to be. Despite that, DeHaan says it’s unlikely that gas prices reach $4 per gallon in 2024.
“But if there are any major refinery issues, especially at the BP refinery in Northwest Indiana, which is the region’s largest, then we could briefly see $4. So, $4 per gallon shouldn’t happen, but if there are refinery issues, we could briefly see it,” said DeHaan.
When demand for gas goes up, that’s typically when prices go up.
“We generally see demand going up in mid-to-late February once temperatures start to warm up. They’ll be relatively high through the course of the summer before tapering off. Then just ahead of the Presidential election, they will fall and it has nothing to with the election, but everything to do with the fact that Americans drive less in the cooler months,” said DeHaan.
DeHaan also believes there will be a window of opportunity for lower prices in February.
“I think that’s when refiners are going to have to start liquidating gasoline inventories that they’ve built up. Those inventories are quite healthy right now. Typically, refineries have to discount that gasoline to get it out of the system. That will likely lead to price drops as refineries try to get through that. Then we’ll get whiplashed significantly because we’ll be going from a clearance sale back to those summer blends of gasoline,” said DeHaan.
Summer gasoline costs more than winter gasoline.
DeHaan does think diesel gas prices won’t be as bad this year.
“It’s going to be far more moderate this winter than it was last winter. That’s thanks to the return of the BP-Husky Toledo Refinery in Ohio, which was down all last winter,” said DeHaan.
In the peak of summer driving season in May, DeHaan believes the national average for gas could go as high as $3.89 per gallon but be slightly less than that in Indiana.
